First In First Out - How do you do first in first out?

Q: How do you do first in first out?

To calculate FIFO (First-In, First Out) determine the cost of your oldest inventory and multiply that cost by the amount of inventory sold, whereas to calculate LIFO (Last-in, First-Out) determine the cost of your most recent inventory and multiply it by the amount of inventory sold.

Answer

The First-In, First-Out (FIFO) method requires you to multiply the cost of your oldest inventory by the amount of inventory that was sold, whereas the Last-In, First-Out (LIFO) method requires you to multiply the cost of your most recent inventory by the amount that was sold.

First In First Out - How do you do first in first out?

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